Decision Maker:

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: January 27, 2026

Purpose:

Content: Salford City Council - Record of Decision   I Paul Dennett, City Mayor in exercise of the powers contained within the City Council Constitution do hereby approve to:   Authorise officers to commence a formal consultation exercise on proposals to designate a citywide Additional HMO Licensing scheme for Section 257 Houses in Multiple Occupation in Salford. The Reasons are: Evidence within the consultation report strongly supports the need to proceed with a citywide consultation on an Additional Licensing Scheme. The findings demonstrate that a significant proportion of Section 257 HMOs in Salford are poorly managed, posing serious risks to tenant safety and negatively impacting the wider community.   Inspections revealed widespread issues, including inadequate fire safety measures in 97% of properties and health hazards identified in 99% under the Housing Health and Safety Rating System. These problems are compounded by the difficulty in identifying and regulating Section 257 HMOs under current frameworks, as many fall outside existing licensing schemes and landlords are not required to notify the Council.   The inspection programme also highlighted inconsistent landlord practices, ranging from neglect to lack of awareness. While serious breaches were addressed through enforcement, most landlords responded positively to informal engagement. However, without proactive inspections, many unsafe properties would remain undetected. The proposal to consult on introducing a citywide Additional Licensing Scheme is considered necessary and proportionate. Subject to the consultation results and approval of subsequent reports, the scheme will bring Section 257 HMOs into regulation, ensure minimum standards are met, and support Salford’s broader housing strategy by improving property conditions, reducing anti-social behaviour, and promoting community cohesion.   In conclusion, the proposed scheme represents a vital step toward safeguarding tenants and raising standards across the private rented sector. Options considered and rejected were: ·         Take no action – this would be inconsistent with established Council policy and would fail to address the legitimate concerns of residents, local elected members and other stakeholders regarding the impact of the private rented sector on the local housing market. ·         Defer the consultation of additional licensing. Assessment of Risk: The risk is considered low.  The report is seeking authority to commence a consultation exercise.  This exercise will be conducted in accordance with the requirements of the relevant legislation, government guidance, case law and best practice. The source of funding is: Any costs incurred in facilitating the statutory consultation will be met from the Housing Regulatory services revenue budget and are estimated to be no more than £7,500. Legal Advice obtained: Section 257 HMOs are buildings converted into self-contained flats where:   (a)  building work undertaken in connection with the conversion did not comply with the appropriate building standards and still does not comply with them; and (b)  less than two-thirds of the self-contained flats are owner-occupied.   These HMOs are not subject to mandatory licensing, but they can be included in an additional licensing scheme under Part 2 of the Act.   Section 56(2) of the Housing Act 2004 makes provision for local housing authorities  to designate the area of their district, or an area in their district, of areas for additional licensing if:   (a)  There is evidence that a significant proportion of HMOs in the area are managed ineffectively, causing problems either for those occupying the HMOs or for members of the public.   The designation must specify the types of HMOs covered, which can include all Section 257 HMOs in the area of the district.   Before making a designation, the authority must– (a)   carry out a statutory consultation with persons who are likely to be affected by the designation, including landlords, tenants and stakeholders, and (b)   consider/take account of any representations made in accordance with the consultation and not withdrawn.   Failure to consult properly could render the scheme unlawful.   In forming an opinion as to the matter mentioned in subsection (2) of Section 56 above the authority must have regard to any information regarding the extent to which any codes of practice approved under Section 233 have been complied with by persons managing HMOs in the area in question.   Section 57 of the Housing Act 2004 also applies in respect of additional licensing schemes. In that regard, the authority must ensure that any exercise of the power is consistent with the authority's overall housing strategy.   The authority must also seek to adopt a co-ordinated approach in connection with dealing with homelessness, empty properties and anti-social behaviour affecting the private rented sector, as regards to both: (a)   combining licensing under this Part with other courses of action available to them, and (b)   combining such licensing with measures taken by other persons.   The authority must not make a particular designation under Section 56 of the Act, unless: (a)   they have considered whether there are any other courses of action available to them (of whatever nature) that might provide an effective method of dealing with the problem or problems in question, and (b)   they consider that making the designation will significantly assist them to deal with the problem or problems (whether or not they take any other course of action as well).   This report seeks authority to commence a public consultation exercise as required by Section 56 of the Housing Act 2004. A failure to consult properly and fairly can give rise to legal challenge by way of judicial review proceedings.   When exercising public functions, the Council must ensure that it complies with the public sector equality duty as set out in section 149 of the Equality Act 2010. In that regard, an impact assessment measures and records compliance with this duty.   The evidence presented within the Draft Additional HMO Consultation Report demonstrates that a significant proportion of S257 HMOs in Salford are being managed ineffectively, resulting in serious risks to tenant safety and negative impacts on the wider community.   The council have also considered whether there are any courses of action available that might provide an effective method of dealing with the problem but concluded that an additional HMO licensing designation is the most appropriate course of action in the circumstances.   Potential Legal Risks include: ·         Judicial review for failure to follow statutory process. ·         Human Rights Act challenges if the scheme is disproportionate. ·         Equality Act challenges (conducting an Equality Impact Assessment significantly reduces the risk of challenges under the Equality Act 2010 and demonstrates that the Authority have complied with their Public Sector Equality Duty by having “due regard” to eliminating discrimination, advancing equality of opportunity and fostering good relations between protected groups). Financial Advice obtained: This report seeks to obtain approval to go out to consultation for a Section 257 HMO Licensing scheme, and as such there are minimal financial implications as the work will be carried out within existing resources.   Any costs incurred in facilitating the statutory consultation will be met from the Housing Regulatory services revenue budget and are estimated to be no more than £7,500   If the scheme is implemented the costs for running the scheme would be self-financing from the fees chargeable to landlords  Procurement Advice obtained: If approved, the consultation will be undertaken by existing internal staff resources.  Existing frameworks will be utilised for printing and stationary HR Advice obtained: If approved, the consultation will be undertaken by existing staff resources. Climate Change Advice obtained: Additional HMO Licensing can assist in identifying rented properties in poor condition.  Where these properties are inspected and low energy performance is noted, measures will be required to be undertaken to improve the efficiency of the property.  Tenants identified as being in fuel poverty are referred to appropriate schemes The following documents have been used to assist the decision process: ·         Housing Act 2004 ·         Appendix A - Draft Additional HMO consultation report Contact Officer:      Craig Condron / Sarah Hughes                Telephone numbers: 0161 793 3351 / 0161 793 3087 ·         The appropriate scrutiny to call-in the decision is the Community and Neighbourhoods Scrutiny panel          Signed:       Paul Dennett                                              Dated: 27.01.26                         City Mayor   For Democratic Services use only   This decision was published on 27.01.26                                            This decision will come in force at 4.00 p.m. on 03.02.26 unless it is called-in in accordance with the Decision Making Process Rules.